FTSE 100 Index Edges Further Lower; UK Inflation to 3.6%

The FTSE 100 slipped around 0.2% on Wednesday morning as European markets continued to weaken, mirroring declines in the United States.

Germany’s DAX was down 0.1%, while France’s CAC 40 fell 0.5%. The cautious tone followed another downbeat session on Wall Street, where the Nasdaq dropped 1.2% and the S&P 500 closed 0.8% lower on Tuesday.

Meanwhile, fresh data showed that UK inflation eased to 3.6% last month, down from 3.8%. The fall was partly attributed to smaller increases in energy prices compared with a year earlier.

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The latest reading adds to expectations that price pressures are gradually cooling, although inflation remains above the Bank of England’s 2% target.

In corporate news, WH Smith said its chief executive has stepped down following accounting errors uncovered in the retailer’s North American division.

Among the FTSE 100’s biggest fallers were Auto Trader and Severn Trent, both down 1.3%, while Standard Chartered slipped 1.2%.

On the upside, Sage led the index with a 4.2% gain, followed by Fresnillo at 3.5% and ICG at 2.8%. Sage reported its full-year results, showing a rise in earnings and revenue, stating that AI is “opening up new possibilities for businesses and creating a significant opportunity for Sage.”

Lloyds Banking Group announced the acquisition of digital wallet platform Curve, signalling its continued push into financial technology as competition in the payments sector intensifies. The acquisition is expected to be completed in the first half of 2026.